Did bad credit checks – get fined

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Did bad credit checks – get fined
Photo: Lars Schröder/TT

Avida Finans has given loans without checking whether the borrower can repay them. Now the finance company is being fined 20 million kronor by the Swedish Financial Supervisory Authority (FI).

"It is crucial for banks and credit market companies to conduct sufficient credit checks to prevent loans from being given to people who cannot repay," says FI's acting Director General Malin Alpen in a press release.

Avida has on at least 30 occasions granted loans to consumers who were unable to repay the money, according to the authority.

According to Avida, it was a calculation error affecting a few customers for a limited time.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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